Rolling-down is one of our frequently used covered call writing exit strategies. During the January 2022 contracts, there was a 5% market decline due to COVD-19, inflation and interest rate concerns. This article will highlight a rolling-down strategy I implemented with Healthcare Select Sector SPDR (NYSE: XLV) in one of my portfolios where a 4.68% […]
BCI PODCAST 83: Setting Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Manner
Watch Video: Listen To Audio Version: Diversification is a key requirement for successful option-trading. This podcast details how to set up a portfolio of large-cap tech companies as well as blue-chip companies in a time-efficient manner. The Select sector SPDRs and Invesco QQQ Trust are discussed with graph descriptions and calculations used to re-enforce the […]
Exit Strategy Choices After Exercise of a Cash-Secured Put: A Real-Life Example with Etsy, Inc. (Nasdaq: ETSY) + Free Webinar Registration Link
How do we manage our trades after allowing exercise of a cash-secured put? This gameplan must be in place prior to entering the put trade. In this article, I will compare 2 strategy choices, writing a weekly covered call or implementing the stock repair strategy. I will be highlighting a real-life trade taken from one […]
Selling 10-Delta Puts with 4-Day Expirations + 2 Free Webinar Registration Links
Can we sell 10-Delta weekly cash-secured puts and still generate significant annualized returns on a week where there is a market-recognized holiday reducing the number of days to expiration from 5 to 4? The answer is yes. This article will highlight 4 put sales I executed on the week of 12/20/2021 – 12/23/2021 where the […]
BCI Podcast 82. Risky Stocks Can Result In Challenging Decisions
Watch Video: Listen To Audio Version: Using highly volatile stocks with covered call writing can result in trade management dilemmas. This podcast will incorporate the pros and cons of high implied-volatility stocks, initial time-value calculations and the time-value cost-to-close decisions when share price accelerates. Analysis of the mid-contract unwind exit strategy with Axsome Therapeutics, Inc. […]
Ask Alan 195: Will the Upcoming Dividend Cause My Shares to Be Sold?
Alan answers a question posed by Elliot, who asks: Hi Alan, Hi Alan, I bought SBLK and sold the 3/18/2022 $29.00 call. The stock closed today (2/26) at $31.76 and there is an upcoming ex-dividend date on 3/2/2022. Will my shares be sold on Monday, the day before the ex-date? Thanks, Bob The main cause […]
Using The Put-Call-Put (PCP) Strategy to Create Downside Protection on Steroids
Covered call writing and selling cash-secured puts are low-risk option-selling strategies that lower our cost-basis and generate cash-flow as we seek to beat the market on a consistent basis. By integrating both strategies, we construct a multi-tiered option-selling strategy which will both generate significant cash-flow plus offer substantial downside protection. In our BCI community, we […]
Rolling-Up in the Same Contract Month: A Real-Life Example with Ford Motor Company (NYSE: F)
Rolling-up in the same contract month is generally not a covered call writing exit strategy implemented in our BCI methodology. One of our members shared with me a series of trades he executed with F where a 6-month call was written in August 2021 for a 2/18/2022 expiration. This article will breakdown the mathematical components […]
BCI PODCAST 81: Managing ITM Covered Call Strikes When Share Price Moves Higher
Watch Video: Listen To Audio Version: When stock price moves higher in the middle of a contract leaving the short call deep in-the-money, we ask ourselves if an exit strategy opportunity is available. Rolling the option out or closing the entire position at a profit are considerations analyzed in this podcast. A real-life example with […]
Using Implied Volatility to Determine Safe Strikes for Portfolio Overwriting: A Real-Life Example with PayPal Holdings, Inc. (Nasdaq: PYPL)
Portfolio overwriting is a covered call writing-like strategy. We use it with our long-term buy-and-hold portfolios in non-sheltered accounts with the objectives to generate additional cash-flow while still retaining the shares. Share retention is a required objective to avoid potential negative capital gains tax issues. In my books and online videos, I suggest a 6% […]
Podcast
- 83. Setting Up a Portfolio of Nasdaq and S&P 500 Stocks in a User-Friendly Manner
- 82. Risky Stocks Can Result In Challenging Decisions
- 81. Managing ITM Covered Call Strikes When Share Price Moves Higher
- 80. Using the VIX to Achieve Higher Option-Selling Returns
- 79. Adjusting Target Goals with ETFs
- 78. REITS: Good Covered Call Writing Candidates?
- 77. Buyers Have Rights and Sellers Have Obligations- Covered Call Writing Explained
- 76. 5 Top Myths and Misunderstandings about Covered Call Writing
- 75. Reverse Stock Splits Understanding Contract Adjustments
- 74. Strike Selection Using Technical Analysis and Market Assessment
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